̽»¨¾«Ñ¡

The I.I.I. Offers Crime Prevention and ̽»¨¾«Ñ¡ Tips

INSURANCE INFORMATION INSTITUTE
Contact: Press Offices
New York: 212-346-5500; media@iii.org
Washington, D.C.: 202-833-1580

NEW YORK, December 12, 2007 - Distracted holiday shoppers are particularly vulnerable to identity theft which unfortunately is a prevalent white collar crime, according to the ̽»¨¾«Ñ¡ Information Institute (I.I.I.)

"The hustle and bustle of the holidays creates the perfect environment for thieves bent on stealing your credit cards or other financial information," said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I. "Shoppers are tired, stores are crowded and it's easy to become less guarded about personal information such as credit cards, personal checks, drivers licenses and social security numbers."

A recent found that 8.3 million Americans were the victims of identity theft in 2005. In approximately half of the incidents, thieves obtained goods or services worth $500 or less but in 10 percent of cases, thieves got at least $6,000 worth of goods or services.

Identity thieves take personal information and use it to impersonate a victim, stealing from bank accounts, establishing phony insurance policies, opening unauthorized credit cards or obtaining unauthorized bank loans.

Use of stolen credit card numbers is among the most common forms of identity theft, but some schemes use electronic means, including online scams like "phishing," in which thieves use email inquiries purporting to be from financial or other online organizations, to obtain sensitive account information. Others might use more old-fashioned methods, such as "dumpster diving"-rooting around in people's garbage to collect financial information.

The advent of new, "no-swipe" credit cards that transmit account and user information through radio frequency identification may make it possible, in some cases, for identity thieves to use a simple electronic device to capture the information.

Victims of identity theft are often left with lower credit scores and spend months or even years getting credit records corrected. They frequently have difficulty getting credit, obtaining loans and even finding employment.

"With so much increased spending, consumers should carefully monitor their credit card bills and bank balances to make sure that they actually made all of the purchases," said Ms. Salvatore. In fact, the Federal Trade Commission (FTC) reports that 52 percent of all identity theft victims discovered that their identity was stolen by monitoring their accounts.

To protect your hard-earned money this holiday season, the I.I.I. has the following tips:

• Keep the amount of personal information in your purse or wallet to the bare minimum. Avoid carrying additional credit cards, your social security card or passport unless absolutely necessary.
• Guard your credit card when making purchases. Shield your hand when using ATM machines or making long distance phone calls with phone cards. Don't fall prey to "shoulder surfers" who may be nearby.
• Always take credit card or ATM receipts. Do not throw receipts into public trash containers, leave them on the counter or put them in your shopping bag where they can easily fall out or get stolen.
• Proceed with caution when shopping online. Make sure that you are buying from a reputable retailer with a secure network.
• Monitor your accounts. Do not rely on your credit card company or bank to alert you of suspicious activity. Carefully monitor your bank and credit card statements to make sure all transactions are accurate. If you suspect a problem, contact your credit card company or bank immediately.
• Order a copy of your credit report from each of the three major credit bureaus. A law that took effect December 1, 2004, entitles you to one free credit report per year. Make sure it is accurate and includes only those activities you have authorized.
• Place passwords on your credit card, bank and phone accounts. Avoid using easily available information like your mother's maiden name, your birth date, any part of your social security number or phone number, or any series of consecutive numbers. If you suspect a problem with your credit card, change your password immediately.
• Do not give out personal information. Whether on the phone, through the mail or over the Internet, do not give out personal information unless you've initiated the contact or you are sure you know who you're dealing with and that they have a secure line.
• Shred, shred, shred. Tear or shred any documents that contain personal information such as credit card numbers, bank statements, charge receipts or credit card applications, before disposing of them.

In order to make it more difficult for identity thieves to open accounts in your name, you can also contact the fraud department of any one of the three credit reporting agencies to place a fraud alert on your credit report-by law, the agency you contact is required to contact the other two agencies. The fraud alert tells creditors to contact you before opening any new accounts or making any changes to your existing accounts. The three major credit bureaus are , and .

If you are the victim of a crime, report it to the store in question and police immediately. Ask for a copy of the police report. You will need it if you want to file an insurance claim or report the crime to the FTC for their assistance. Victims of identity fraud can file a complaint on the , or by calling 877-IDTHEFT.

Identity theft is covered by insurance. Some companies include coverage for identity theft as part of their homeowners insurance policy; others sell it as either a stand-alone policy or as an endorsement to a homeowners or renters insurance policy. The coverage provides reimbursement to crime victims for the cost of restoring their identity and repairing credit reports, including expenses such as phone bills, lost wages, notary and certified mailing costs, and sometimes attorney fees (with the prior consent of the insurer). Some companies also offer resolution services to guide you through the process of recovering your identity.

If you have any questions regarding insurance, contact your insurance company or representative. For more information about identity theft and insurance, go to the I.I.I. Web site.

For more information about avoiding and dealing with identity theft, go to the .

Download a related audio file here.

The I.I.I. is a nonprofit, communications organization supported by the insurance industry.